Determinants of tax compliance costs of small and medium enterprises in emerging economies: Evidence from Ghana
Small and medium enterprises (SMEs) are important to emerging economies, especially in tackling economic growth and unemployment challenges. SMEs bear a disproportionate burden in complying with many forms of regulations, in particular tax rules and legislation. Complying with tax regulations often...
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| Format: | Article |
| Language: | English |
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Elsevier
2022-01-01
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| Series: | Social Sciences and Humanities Open |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2590291122000973 |
| _version_ | 1798014280987049984 |
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| author | Bruce-Twum Ernest Schutte Danie Asare Nicholas |
| author_facet | Bruce-Twum Ernest Schutte Danie Asare Nicholas |
| author_sort | Bruce-Twum Ernest |
| collection | DOAJ |
| description | Small and medium enterprises (SMEs) are important to emerging economies, especially in tackling economic growth and unemployment challenges. SMEs bear a disproportionate burden in complying with many forms of regulations, in particular tax rules and legislation. Complying with tax regulations often result in increased costs and a significant reduction in profits. There is very little information available about the various factors that determine the tax compliance costs of SMEs, especially in Africa. The study attempted to identify the determinants of tax compliance cost using a survey of 132 SMEs in Ghana. From the analysis of three models and OLS regression, the study found that the size of the business, the age of the business, the business sector and technological costs were significant determinants of tax compliance cost. The results provide meaningful insight to the revenue authorities in knowing the determinants of SMEs' tax compliance costs. Furthermore, the findings provide valuable information to SMEs to assist in evaluating and managing their tax compliance costs. Finally, the study offers an empirical contribution to the scanty literature on SMEs' tax compliance cost in emerging economies. |
| first_indexed | 2024-04-11T15:16:01Z |
| format | Article |
| id | doaj.art-85bb487eb1b44cf4bbe339bcb62145b4 |
| institution | Directory Open Access Journal |
| issn | 2590-2911 |
| language | English |
| last_indexed | 2024-04-11T15:16:01Z |
| publishDate | 2022-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Social Sciences and Humanities Open |
| spelling | doaj.art-85bb487eb1b44cf4bbe339bcb62145b42022-12-22T04:16:29ZengElsevierSocial Sciences and Humanities Open2590-29112022-01-0161100343Determinants of tax compliance costs of small and medium enterprises in emerging economies: Evidence from GhanaBruce-Twum Ernest0Schutte Danie1Asare Nicholas2Central University, Central Business School, Accra, Ghana; Corresponding author.North-West University, School of Accounting Sciences, Potchefstroom, South AfricaUniversity of Ghana Business School, Accra, GhanaSmall and medium enterprises (SMEs) are important to emerging economies, especially in tackling economic growth and unemployment challenges. SMEs bear a disproportionate burden in complying with many forms of regulations, in particular tax rules and legislation. Complying with tax regulations often result in increased costs and a significant reduction in profits. There is very little information available about the various factors that determine the tax compliance costs of SMEs, especially in Africa. The study attempted to identify the determinants of tax compliance cost using a survey of 132 SMEs in Ghana. From the analysis of three models and OLS regression, the study found that the size of the business, the age of the business, the business sector and technological costs were significant determinants of tax compliance cost. The results provide meaningful insight to the revenue authorities in knowing the determinants of SMEs' tax compliance costs. Furthermore, the findings provide valuable information to SMEs to assist in evaluating and managing their tax compliance costs. Finally, the study offers an empirical contribution to the scanty literature on SMEs' tax compliance cost in emerging economies.http://www.sciencedirect.com/science/article/pii/S2590291122000973H21H25 |
| spellingShingle | Bruce-Twum Ernest Schutte Danie Asare Nicholas Determinants of tax compliance costs of small and medium enterprises in emerging economies: Evidence from Ghana Social Sciences and Humanities Open H21 H25 |
| title | Determinants of tax compliance costs of small and medium enterprises in emerging economies: Evidence from Ghana |
| title_full | Determinants of tax compliance costs of small and medium enterprises in emerging economies: Evidence from Ghana |
| title_fullStr | Determinants of tax compliance costs of small and medium enterprises in emerging economies: Evidence from Ghana |
| title_full_unstemmed | Determinants of tax compliance costs of small and medium enterprises in emerging economies: Evidence from Ghana |
| title_short | Determinants of tax compliance costs of small and medium enterprises in emerging economies: Evidence from Ghana |
| title_sort | determinants of tax compliance costs of small and medium enterprises in emerging economies evidence from ghana |
| topic | H21 H25 |
| url | http://www.sciencedirect.com/science/article/pii/S2590291122000973 |
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